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The Central Bank of Egypt (CBE) withdrew EGP 536.95 billion in liquidity from the banking sector on Tuesday through an open market operation involving 10 banks, with an interest rate of 19.5%.

The move comes under the CBE’s framework for its main deposit-taking operations as part of open market operations. Previously, the central bank conducted these operations through weekly fixed-rate auctions, announcing the targeted amount and allocating accepted bids based on each bank’s share of total bids submitted, while applying the main operation rate.

The CBE later revised the mechanism as part of its efforts to adopt international best practices in managing excess banking-sector liquidity and improve the transmission of monetary policy decisions.

Under the revised system, the CBE accepts all submitted bids for its main deposit-taking operations instead of allocating them proportionally. The central bank also publishes the results of each deposit-taking operation on its official website.